Barring disintermediation, a lender wouldn’t entertain a short sale if the loan was current. If the buyer was doing a sub-to transaction, they would bring the payments current to protect their position.
The ratio of the arrearage to the equity being purchased affects the pathway choice. You’d probably have to come across a dumb sub-to buyer to encounter this.
It might be a dumb question but here goes. Has anybody ever run across a situation that both you and another invester tried to buy the same property at the same time, one using sub2 and the other a short sale with the lender?
Could that happen?
Thanx, Tom